Brazil's finance minister sees rate cuts in coming months

Core Viewpoint - Brazilian Finance Minister Fernando Haddad anticipates interest rate cuts in the coming months due to a favorable foreign exchange outlook in Brazil [1] Group 1: Interest Rates and Exchange Rate - Haddad expressed optimism about the potential for rate cuts, indicating that the exchange rate has improved from his earlier prediction of 5.70 reais per dollar to approximately 5.30 [1][2] - The Brazilian central bank's next policy decision is expected to maintain the benchmark Selic rate at 15%, following a tightening cycle that raised rates by 450 basis points [3] - Economists predict that interest rates will remain steady through December as the central bank aims to control inflation, which has consistently exceeded the 3% target [3] Group 2: Economic Outlook - Haddad projected that President Luiz Inacio Lula da Silva will end his term in 2026 with the lowest accumulated inflation, expected to be below 20% for the first time [4] - The average economic growth during Lula's presidency is estimated to be around 3% per year, with unemployment rates at historic lows [4] - These economic indicators suggest that Brazil is in a stronger fiscal position compared to the previous administration [4]